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Milano Pizza is a small neighborhood pizzeria that has a small area for in- store dining as well as offering take-out and free home delivery
Milano Pizza is a small neighborhood pizzeria that has a small area for in- store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost drivers- the number of pizzas sold and the number of deliveries made. Data concerning the pizzeria's costs appear below Fixed Cost cost per Cost per per Month Pizza Delivery s 5.00 Pizza ingredients Kitchen staff Utilities $ 6,030 $670 s0.90 $690 $448 1,990 $790 $ Delivery person Delivery vehicle Equipment $2.70 $ 2.10 depreciation Rent 0.15 Miscellaneous In November, the pizzeria budgeted for 1,740 pizzas at an average selling price of $13 per pizza and for 200 deliveries Data concerning the pizzeria's operations in November appear below Actual Results 1,840 180 $24,530 Pizza ingredients $ 8,290 $ 5,970 $ 915 Delivery person S 486 Delivery vehicle $ 998 Pizzas Deliveries Revenue Kitchen staff Utilities Equipment $ 448 depreciation Rent Miscellaneous $ 1,990 $ 826
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